Big Gainer Alert: Trading today’s 7.9% move in GUARDANT HEALTH INC $GH

Quantchabot has detected a promising Bull Call Spread trade opportunity for GUARDANT HEALTH INC (GH) for the 15-Jul-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

GH was recently trading at $41.27 and has an implied volatility of 84.27% for this period. Based on an analysis of the options available for GH expiring on 15-Jul-2022, there is a 34.22% likelihood that the underlying will close within the analyzed range of $41.30-$51.20 at expiration. In this scenario, the average linear return for the trade would be 13.98%.

Big 7.94% Change: After closing the last trading session at $38.24, GUARDANT HEALTH INC opened today at $37.36 and has reached a high of $41.40.

Trade approach: A movement as big as 7.94% is a significantly bullish indicator, so this trade is designed to be profitable if GH maintains its current direction and does not revert back to pricing on the bearish side of $41.27 on 15-Jul-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if GUARDANT HEALTH INC closes at or above $40.55 on 15-Jul-2022. Based on our risk-neutral analysis, there is a 53.43% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.